Chairman was key figure in Clinton era

After four years at the helm of Citigroup, Chuck Prince has been replaced as chairman by Robert Rubin, who, before joining Citigroup in 1999 spent four years as US Treasury secretary during the Bill Clinton administration.

He steps up from the bank's executive committee, where he had long been an adviser to Mr Prince and focused on strategy rather than day-to-day operations.

Before joining the Clinton administration, Mr Rubin had spent 26 years at Goldman Sachs & Co, becoming co-chairman of the investment bank.

Sir Wim Bischoff, who has become the bank's interim chief executive, joined Citigroup in May 2000 after the acquisition of Schroders Plc's investment banking business by Citigroup. He had been chairman of Schroders since May 1995.

The incoming pairing will have to follow through on an overhaul announced by Mr Prince this year. Citigroup said it was axing or relocating 26,500 jobs to improve its sluggish performance, including in Britain, where the company has 11,500 staff.

In a joint interview, Mr Rubin and Mr Bischoff expressed support for Mr Prince's overall strategy. "The board is extremely supportive of Chuck's strategy," Mr Rubin said. "This is absolutely the right track."

It's not clear who might become permanent chief executive. A committee consisting of Mr Rubin, Alain Belda, Richard Parsons and Franklin Thomas will seek a replacement from internal and external candidates.

Analysts have said John Thain, who runs NYSE Euronext, might be a candidate. Internal candidates may include Vikram Pandit, who oversees investment banking and alternative investments at Citigroup, and chief financial officer Gary Crittenden. Some analysts have said neither may be ready yet.